Who Can Open an HSA in 2019? Understanding the Basics of Health Savings Accounts

Health Savings Accounts (HSAs) have gained popularity as a way for individuals to save for medical expenses while enjoying tax benefits. But who exactly can open an HSA in 2019?

To be eligible to open an HSA in 2019, an individual must meet the following criteria:

• Be covered by a High Deductible Health Plan (HDHP) on the first day of the month
• Not be enrolled in Medicare
• Not be claimed as a dependent on someone else's tax return
• Not have any other health coverage that is not an HDHP
• Not have used Veterans Administration (VA) benefits in the past three months

Once these criteria are met, individuals can open an HSA and start saving for qualified medical expenses. HSAs offer tax advantages, including tax-deductible contributions, tax-free growth of funds, and tax-free withdrawals for qualified medical expenses.

It's important to note that contributions to an HSA can be made by the account holder, an employer, or both. For 2019, the maximum contribution limits are $3,500 for individuals and $7,000 for families.

Opening an HSA can provide financial flexibility and peace of mind when it comes to managing healthcare expenses. By taking advantage of the tax benefits and saving for future medical needs, individuals can better prepare for unexpected healthcare costs.

Health Savings Accounts (HSAs) are more than just a tax-saving tool; they empower you to take control of your healthcare funding. As you consider opening an HSA in 2019, remember it’s essential to meet the eligibility criteria outlined by the IRS.